Investing.com - The Aussie rose on Wednesday despite a downbeat reading on consumer sentiment and weaker than expected housing finance data and concern expressed on China growth by a central bank official.
AUD/USD traded at 0.7048, up 0.43, while USD/JPY changed hands at 120.29, up 0.40%.
The September Westpac-MI Consumer Sentiment gauge fell 5.6% to 93.9, receding from a gain of 7.8% to 99.5 the previous month.
"The Reserve Bank board next meets on Oct. 6. We expect the board will maintain its steady rates policy for the remainder of this year and throughout 2016. The key to any decision to further cut rates, as expected by the financial markets, will be whether the bank's current forecast that the unemployment rate can stabilize around current levels proves sustainable," Westpac chief economist Bill Evans said.
As well, July housing finance rose 0.3%, well below thea gain of 0.8% expected month-on-month after a 4.4% jump the month before.
RBA Deputy Governor Philip Lowe provided some commentary on China at a CEDA event in Melbourne on Wednesday, noting Australia's single largest trading partner China presents a complicated picture and is difficult to assess its economic outlook.
The "recent focus on developments in China has, understandably, thrown the spotlight on the outlook for the Chinese economy," Lowe said in prepared remarks, adding the difficulty is that China is simultaneously adjusting to slower growth in potential output and dealing with a relatively soft phase of its own business cycle.
"The authorities' recent handling of the stock-market crash has led some to ponder the general direction of Chinese policy - including the likely pace of reform across the economy. This is an issue that will bear close watching over the months ahead," Lowe said.
In Japan, the Cabinet Office released the August Consumer Confidence Survey which rose to 41.7 from 40.3 in July, the first gain in two months.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.29% at 95.12.
Overnight, the dollar slipped lower against against the other major currencies in subdued trade on Tuesday, amid mounting uncertainty over whether or not the Federal Reserve will raise interest rates at its meeting this month.
Sentiment on the greenback remained fragile after Friday's U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates.
The Labor Department reported that the U.S. economy added 173,000 jobs last month, the smallest increase in employment in five months and was below expectations for 220,000, while the unemployment rate ticked down to 5.1%, its lowest level since April 2008.
Meanwhile, the single currency remained supported after the European Central Bank indicated last week that it could scale up its quantitative easing program.